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January 1st: Vendor cash flowed/forecasted $100,000 of work for January,…
January 1st
: Vendor cash flowed/forecasted $100,000 of work for January
Mid-January:
Is Vendor/ its subcontractors on track to complete this amount of work?
YES
Vendor submits a UVL for $100,000 for the work done in January
Beginning of February:
Vendor assesses actual work done in January and submits an invoice for that amount. How much work actually occurred in January (and was therefore invoiced for)?
Vendor not able to submit an invoice for whatever reason (ex. system issues, date ext. pending, change order pending, PO issues, etc.)
Mid-February:
If Vendor is still unable to submit an invoice for the January work, Vendor must re-submit (AKA carry forward) the $100,000 UVL. This informs AEP that we still owe you for that work. DO NOT forecast/cash flow this "carry forward" UVL for February. "Cash flows" are predicted WORK, not invoices or UVLs.
Mid-March:
If Vendor is still unable to bill for the $100,000 of work done in January, Vendor must re-submit the $100,000 UVL
again
in March.
Early April:
Invoice for the $100,000 work in January is able to be submitted.
Mid-April:
Since the invoice was submitted earlier in the month, DO NOT re-submit a UVL for the $100,000 January work
$100,000
Perfect. AEP will have no questions, as this was the predicted occurrence.
More or less than $100,000
Vendor adjusts future forecasts/cash flows for the change. Vendor provides an explanation for the variance to AEP (ex. subcontractor did more/less work than expected, weather, changes after UVL submittal, etc.)
NO
How much work was completed/ is predicted to be completed by the end of January?
$0 of work
Vendor does not submit a UVL. Vendor provides a reason for the work not occurring (ex. funding delay, weather delay, change in schedule or scope, etc.)
Beginning of February:
Vendor assesses actual work done in January and submits an invoice for that amount. How much work occurred in January (and therefore was invoiced for)?
$0
Perfect. AEP will have no questions, as this was the predicted occurrence, and Vendor already provided an explanation for why the cash flow was off. Vendor ensures future cash flows account for $0 of work in January.
More than $0
Vendor ensures future cash flows account for actual work done (and invoiced for) in January. Vendor also provides AEP with an explanation (ex. subcontractor was able to get on site earlier than expected, etc.)
$300,000 of work
Vendor submits a UVL for the updated estimate of $300,000 of January work. Vendor provides explanation to AEP for the variance (ex. subcontractor did more work than expected, administrative error, etc.)
Beginning of February:
Vendor assesses actual work done in January and submits an invoice for that amount. How much work occurred in January (and therefore was invoiced for)?
$300,000
Perfect. AEP will have no questions, as this was the predicted occurrence, and Vendor already provided an explanation for why the cash flow was off. Vendor ensures future cash flows account for the $300,000 of work in January.
Less or more than $300,000
NRE adjusts future forecasts/cash flows for the change. NRE provides an explanation for the variance to AEP (ex. subcontractor did more/less work than estimated, weather, changes after UVL submittal, etc.)
Vendor is not able to submit an invoice for whatever reason (ex. system issues, date ext. pending, change order pending, PO issues, etc.)
Mid-February:
If Vendor is still unable to submit an invoice for the January work, Vendor must re-submit (AKA carry forward) the $300,000 UVL. This informs AEP that we still owe you for that work. DO NOT forecast/cash flow this "carry forward" UVL for February. "Cash flows" are predicted WORK, not invoices or UVLs.
Mid-March:
If Vendor is still unable to bill for the $300,000 of work done in January, Vendor must re-submit the $300,000 UVL
again
in March.
Early April:
Invoice for the $300,000 work in January is able to be submitted.
1 more item...
$50,000 of work
Vendor submits a UVL for the updated estimate of $50,000 for January work. Vendor provides AEP with an explanation for the variance (ex. weather, subcontractor did less work than expected, etc.)
Beginning of February:
Vendor assesses actual work done in January and submits an invoice for that amount. How much work occurred in January (and therefore was invoiced for)?
$50,000
Perfect. AEP will have no questions, as this was the predicted occurrence, and Vendor already provided an explanation for why the cash flow was off. Vendor ensures future cash flows account for the $50,000 of work in January.
Less or more than $50,000
Vendor adjusts future forecasts/cash flows for the change. Vendor provides an explanation for the variance to AEP (ex. subcontractor did more/less work than expected, weather, changes after UVL submittal, etc.)
Vendor is not able to submit an invoice for whatever reason (ex. system issues, date ext. pending, change order pending, PO issues, etc.)
Mid-February:
If Vendor is still unable to submit an invoice for the January work, Vendor must re-submit (AKA carry forward) the $50,000 UVL. This informs AEP that we still owe you for that work. DO NOT forecast/cash flow this "carry forward" UVL for February. "Cash flows" are predicted WORK, not invoices or UVLs.
Mid-March:
If Vendor is still unable to bill for the $50,000 of work done in January, Vendor must re-submit the $50,000 UVL
again
in March.
Early April:
Invoice for the $50,000 work in January is able to be submitted.
1 more item...